Technology for Startups

Startup Cycle

Startup Cycle

The picture shows the typical cycle followed by a startup (Thank You Wikipedia 🙂

Check out Paul Graham’s “How to start a startup

You need three things to create a successful startup: to start with good people, to make something customers actually want, and to spend as little money as possible. Most startups that fail do it because they fail at one of these. A startup that does all three will probably succeed.

While Customers and people change from one startup to another, the money aspect is something that I would like to help here, if possible.

The first step is where the ‘startupers’ for lack of external funding, spend their investments and hard-earned money (or by taking loans from banks), invest in the new organization – this is the so-called seed capital as shown in the diagram above. Now, there are options where one can reduce their investments in the first step.

With the advent of technological innovations like  Cloud Computing Services (prominent among them being Amazon’s EC2), it is becoming easier for the startups to get into action. Just create an account on Amazon’s EC2 and within an hour, you are ready to go!!! You can expand the instances (available as Small, Large, extra-Large – differing by memory, processor and storage) as you increase your business. Isn’t it really cool? BTW, GDrive is on its way.

The advent of Open Source software, of course, is no new news. This phenomenon has changed the business models prevalent in the product world. You dont need Microsoft software to run your business – OpenOffice will do the same, if not better, at no additional cost. Linux can perform definitely better than Windows – no second opinions there 😀

If your startup business is about social networking, then you should consider Google’s OpenSocial API. This will allow your website inter-op with any other website that runs the same API (famous ones include, MySpace, orkut, Netlog,, Friendster, Ning and Yahoo!). It is very simple to use and gives you a chance to hook the millions of users on these websites onto your site.

So, now you have taken care of

  • Storage Space (EC2, GDrive)
  • Office software (Linux for OS, OpenOffice for spreadsheets, presentations, documents)
  • Attracting users from other social-networking sites (OpenSocial)

What remains:

  • Hardware – Of course, no one is giving hardware free (as yet). That might be the next big wave. The costs of NetPC are very low – check out the Netbook from ASUS. With such free hardware, you can have your team work from home, saving on office-space.
  • Bandwidth – This has also become cheap over years. There might be deals where very soon one has to pay for the bandwidth alone – the PC might be free to use!!!
  • Probably for matters related to Legal and other official ‘business stuff’, you might need qualified people for a very short-term. Maybe websites like Amazon’s Mechanical Turk can help.

Isnt it easy to open a startup? Get the Billion Dollar Business Idea, buddy – that remains the key, as always.


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One Response to “Technology for Startups”

  1. Puneet Kuthiala Says:

    I couldnt have seen this post at any other time…perfect timing..

    Keep writing.


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